In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …

In oligopolistic industries that are unionised and may be affected by offshoring, falling offshoring costs have a …' domestic outside options. Only if the latter become sufficiently attractive will redistribution induce some offshoring, and it … is only at that level that further economic integration will lead to both wage moderation and offshoring activities …

offshoring. In this second-best world, a revenue-neutral decrease in the progressivity of the tax schedule promotes higher … redistribution to an increasing share of lower-wage workers. However, as the tax reform involves an increase in the offshoring …

crisis in 1994 as exogenous shocks to the marginal cost of offshoring to Mexico, I proceed to test these implications with …Offshoring of US jobs is controversial. Critics fear that offshoring will lead to lost jobs and lower domestic wages at … into offshoring. Given a shock that lowers offshoring costs, the theory predicts that domestic wages rise at firms that …